The supply curve will shift when:

Question

Quizplus · Accepted Answer

Labor costs are a direct factor in the production costs for goods and services. When labor costs change, it directly affects the supply of the product because it alters the cost of production. If labor costs increase, it becomes more expensive to produce goods, potentially leading to a decrease in supply. Conversely, if labor costs decrease, production becomes cheaper, possibly increasing the supply. Changes in consumer incomes, tastes and preferences, and buyers' expectations primarily affect demand, not supply.

The Supply Curve Will Shift When